ANCHORAGE, AK – AUGUST 13, 1998 – Alyeska President and CEO Bob Malone announced today that he is bringing in an independent team to assess and assist Alyeska in achieving an open business environment. The announcement follows a decision by Malone to create a new position at Alyeska to help address the culture change issues Alyeska has been working on for the past five years.

"I believe that many people at Alyeska are making a tremendous effort to move the company forward. But I can't ignore the information from the BLM's survey that our employees have difficulty raising concerns. We will have an open environment that achieves business results, is open to different ideas, and values people. We take our job as operator of the Trans Alaska Pipeline System very seriously, and with a great deal of pride, and this effort shows our commitment to that job," said Malone.

Seventeen-year Alyeska veteran Rob Shoaf will be leading the effort to improve the work environment at Alyeska. Rob has met with other companies and studied how they have improved their corporate culture and created a positive business environment. He will be working closely with Little Harbor Consultants to identify employee attitudes and work environment issues, as well as review the Employee Concerns Program and its effectiveness. "Little Harbor Consultants has been successful in helping others achieve the changes we are aiming for here at Alyeska. I'll be working to understand what needs to be changed here at Alyeska, and figure out how to help the company achieve some specific measurable results in terms of culture change, and then move those practices into the way we do business," Shoaf said.

Since 1993, Alyeska has implemented several new programs to address culture change. The company has an active Employee Concerns Program, has a 'Culture of Trust' training program in place for all employees, and managers and supervisors have participated in special training on how to work with concerned employees. While these programs are good, feedback from employees indicates that a major effort is needed to produce the necessary change. "I am committed to an open business environment. I know that the public is interested in our company and what we are doing to change. I am eager to hear the results of the assessments and look forward to action on the recommendations which will speed our progress in this area," Malone said.

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